MIRA INFORM REPORT

Report Date :

10.04.2014

IDENTIFICATION DETAILS

Name :	MANALI PETROCHEMICALS LIMITED
Registered Office :	SPIC House 88, Old No.97, Mount Road, Guindy, Chennai - 600032, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	11.06.1986
Com. Reg. No.:	18-013087
Capital Investment / Paid-up Capital :	Rs.860.347 Millions
CIN No.: [Company Identification No.]	L24294TN1986PLC013087
TAN No.: [Tax Deduction & Collection Account No.]	CHEM00306F
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Petrochemical Products like Propylene Oxide (PO), Propylene Glycol (PG) and Polyols (PY).
No. of Employees :	310 (Approximately)

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India’s current account deficit for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A1 (Short Term Bank Facilities)
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	05.10.2012

Rating Agency Name	CARE
Rating	A- (Long Term Bank Facilities)
Rating Explanation	Adequate degree of safety and low credit risk.
Date	05.10.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	SPIC House 88, Old No. 97, Mount Road, Guindy, Chennai - 600032, Tamilnadu, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-mail:	companysecretary@manalipetro.com cs@manalipetro.com
Website:	http://www.manalipetro.com
Principal Office and Plant I:	Ponneri High Road, Manali, Chennai – 600068, Tamilnadu, India
Tel. No.:	91-44-25941025/ 25941249/ 25941253/ 25941557/ 25943910/ 25941421
Fax No.:	91-44-25941199
E-Mail :	it@manalipetro.com mkt@manalipetro.com
Plant II:	Sathangadu Village, Manali, Chennai – 6000680, Tamilnadu, India
Tel. No.:	91-44-25941698/ 25941402
Secretarial Department:	Ponneri High Road, Manali, Chennai 600068, Tamilnadu, India
Tel. No.:	91-44-25943895
E-Mail :	companysecretary@manalipetro.com
Website:	http://www.manalipetro.com
Branches	Located at: · Delhi · Mumbai · Kolkata

DIRECTORS

(AS ON 31.03.2013)

Name :	Mr. Ashwin C Muthiah
Designation :	Chairman
Name :	Mr. T K Arun
Designation :	Director (Nominee of TIDCO)
Name :	Mr. Brig (Retd.) Harish Chandra Chawla
Designation :	Director
Name :	Mr. Kulbir Singh
Designation :	Director
Name :	Mr. Sanjiv Ralph Noronha
Designation :	Director
Name :	Mr. Muthukrishnan Ravi
Designation :	Managing Director

KEY EXECUTIVES

Name :	Mr. S Vasudevan
Designation :	Chief Financial Officer and Company Secretary
Audit Committee :	· Mr. Brig (Retd.) Harish Chandra Chawla · Mr. T K Arun · Mr. Kulbir Singh · Mr. Sanjiv Ralph Noronha

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2013)

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	65856053	38.29
Financial Institutions / Banks	11212500	6.52
Any Others (Specify)	12250	0.01
Directors/Promoters & their Relatives & Friends	12250	0.01
Sub Total	77080803	44.81
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	77080803	44.81
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	185100	0.11
Financial Institutions / Banks	26325	0.02
Foreign Institutional Investors	2260000	1.31
Sub Total	2471425	1.44
(2) Non-Institutions
Bodies Corporate	10746566	6.25
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Millions	59861720	34.80
Individual shareholders holding nominal share capital in excess of Rs.0.100 Millions	15900060	9.24
Any Others (Specify)	5938655	3.45
Clearing Members	64636	0.04
Hindu Undivided Families	2810655	1.63
Non Resident Indians	2975814	1.73
Overseas Corporate Bodies	85050	0.05
Trusts	2500	0.00
Sub Total	92447001	53.75
Total Public shareholding (B)	94918426	55.19
Total (A)+(B)	171999229	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	171999229	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Petrochemical Products like Propylene Oxide (PO), Propylene Glycol (PG) and Polyols.

Products :

Products Description	Item Code No.
Polyol	39072010
Propylene Glycol	29053200
Isocyanates	29291010

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Propylene Oxide	MT	36000	32149
Propylene Glycol	MT	20000	19224
Polyols # # #	MT	# # # 50000	21461
PGMME	MT	2700	939
DCP and DCIPE	MT	7200	6339
Di – Propylene Glycol	MT	2320	1711
Tri – Propylene Glycol	MT	288	164
DPGMME	MT	460	217

NOTE:

· # From March 2010

· ## From February 2011

· ### Grade Dependent

· Including Captive Consumption.

· As certified by management and relied on by the auditors, this being a technical matter.

GENERAL INFORMATION

No. of Employees :

310 (Approximately)

Bankers :

· State Bank of India

· State Bank of Hyderabad

· State Bank of Patiala

· Indian Bank

· Canara Bank

· Punjab National Bank

· Corporation Bank

· State Bank of Bikaner and Jaipur

· State Bank of Mauritius

Facilities :

Secured Loans	31.03.2013	31.03.2012
	(Rs. In Millions)
Cash Credit from Banks	20.290	11.872
Total	20.290	11.872
NOTE: Cash Credit from banks, which is repayable on demand, is secured by hypothecation of inventories, book debts and other receivables, both present and future, and by way of a second charge on the Company’s immovable properties.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells, Chennai Chartered Accountants
Address :	ASV N Ramana Tower, 52, Venkatnarayana Road, T. Nagar, Chennai- 600017, Tamilnadu, India
Cost Auditor :
Name :	S Gopalan and Associates
Address :	F-1, Nethrambigai Apartments 15, Vembuli Amman Koil Street, K K Nagar West, Chennai – 600078, Tamilnadu, India
Associates :	· SIDD Life Sciences Private Limited

CAPITAL STRUCTURE

(AS ON 31.03.2013)

Authorised Capital :

No. of Shares	Type	Value	Amount
240000000	Equity Shares	Rs.5/- each	Rs.1200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
171999229	Equity Shares	Rs.5/- each	Rs.859.996 Millions
	Add: Shares Forfeited		Rs.0.351 Million
	Total		Rs.860.347 Millions

NOTE:

1. There has been no movement in the Share Capital during the year. The Company has only one class of equity shares having a par value of Rs.5 per share. Each holder of the equity shares is entitled to one vote per share. In the event of repayment of Share Capital, the same will be in proportion to the number of equity shares held.

2. For the year ended March 31, 2013, the amount of dividend recognized as distributions to equity shareholders is Rs.0.50 per shares (Previous year: Re.0.60). The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Details of shares held by shareholders holding more than 5% shares in the Company:

	31.03.2012
Name of shareholders	No. of Shares	% Holding
SIDD Life Sciences Private Limited	65846053	38.28
Tamilnadu Industrial Development Corporation Limited	11212500	6.52

FINANCIAL DATA

[All figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	860.347
(b) Reserves & Surplus	1064.316
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1)+(2)	1924.663
(3) Non-Current Liabilities
(a) long-term borrowings	0.000
(b) Deferred tax liabilities (Net)	150.247
(c) Other long term liabilities	19.167
(d) long-term provisions	9.487
Total Non-current Liabilities (3)	178.901
(4) Current Liabilities
(a) Short term borrowings	20.290
(b) Trade payables	444.174
(c) Other current liabilities	55.308
(d) Short-term provisions	167.213
Total Current Liabilities (4)	686.985
TOTAL	2790.549
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1025.483
(ii) Intangible Assets	0.000
(iii) Capital work-in-progress	37.440
(iv) Intangible assets under development	0.000
(b) Non-current Investments	41.245
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	153.781
(e) Other Non-current assets	0.000
Total Non-Current Assets	1257.949
(2) Current assets
(a) Current investments	22.406
(b) Inventories	598.389
(c) Trade receivables	391.981
(d) Cash and cash equivalents	64.587
(e) Short-term loans and advances	455.000
(f) Other current assets	0.237
Total Current Assets	1532.600
TOTAL	2790.549

SOURCES OF FUNDS		31.03.2012	31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		860.347	860.347
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		883.373	566.518
4] (Accumulated Losses)		0.000	0.000
NETWORTH		1743.720	1426.865
LOAN FUNDS
1] Secured Loans		11.872	59.217
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		11.872	59.217
DEFERRED TAX LIABILITIES		134.420	131.358
TOTAL		1890.012	1617.440
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		989.897	915.330
Capital work-in-progress		47.155	101.054
INVESTMENT		180.390	339.429
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	654.381	431.299
	Sundry Debtors	383.541	286.893
	Cash & Bank Balances	63.178	46.014
	Other Current Assets	0.000	0.000
	Loans & Advances	386.562	125.506
Total Current Assets		1487.662	889.712
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	503.615
	Other Current Liabilities	88.657	526.742
	Provisions	222.820	101.343
Total Current Liabilities		815.092	628.085
Net Current Assets		672.570	261.627
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		1890.012	1617.440

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	5221.527	5739.630	4519.027
		Other Income	70.776	68.321	47.506
		TOTAL (A)	5292.303	5807.951	4566.533
Less	EXPENSES
		Raw Material and Packing Material Consumed	3597.543	3943.227	3116.184
		Purchase of Traded Goods	190.497	136.505	135.307
		Power and Fuel	0.000	0.000	401.842
		Employee Cost	188.742	248.374	148.128
		Other Expenses	927.698	951.034	385.366
		Increase/ Decrease in Stock	(50.554)	(138.146)	(27.895)
		TOTAL (B)	4853.926	5140.994	4158.932
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		438.377	666.957	407.601
Less	FINANCIAL EXPENSES (D)		21.448	19.229	15.401
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		416.929	647.728	392.200
Less/ Add	DEPRECIATION/ AMORTISATION (F)		63.579	58.840	49.075
	PROFIT BEFORE TAX (E-F) (G)		353.350	588.888	343.125
Less	TAX (H)		80.191	152.091	90.350
	PROFIT AFTER TAX (G-H) (I)		273.159	436.797	252.775
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	557.373	404.549
Less	APPROPRIATIONS
		Proposed Dividend Current Year	NA	NA	86.000
		Tax on Dividend	NA	NA	13.951
	BALANCE CARRIED TO THE B/S		NA	NA	557.373
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports	28.263	34.089	25.154
		Freight and Insurances	0.536	1.002	1.076
	TOTAL EARNINGS		28.799	35.091	26.230
	IMPORTS
		Raw Materials, Stores and Consumables	952.419	1184.559	865.797
		Traded Goods	160.705	102.961	103.135
	TOTAL IMPORTS		1113.124	1287.520	968.932
	Earnings Per Share (Rs.)		1.59	2.54	1.47

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	5.16	7.52	5.53
Net Profit Margin (PBT/Sales)	(%)	6.77	10.26	7.59
Return on Total Assets (PBT/Total Assets}	(%)	13.03	23.77	19.00
Return on Investment (ROI) (PBT/Networth)		0.18	0.34	0.24
Debt Equity Ratio (Total Debt/Networth)		0.01	0.01	0.04
Current Ratio (Current Asset/Current Liability)		2.23	1.83	1.42

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

OPERATIONAL HIGHLIGHTS

During the year the operations of the Company were affected due to general economic slow-down aggravated by cut-throat competition from overseas polyol suppliers. On account of these, there was some setback in the operations vis a vis the performance in the last couple of years, resulting in lower production, sales and profits. The net profit for the year was lower by about 37% at Rs.273.100 Millions against Rs.436.800 Millions in the previous year.

Availability of bio mass fuel for the Captive Power Plant (CPP) has become dearer due to spurt in demand for casuarina wood from paper mills and also similar power plants. Even at increased costs supplies are not forthcoming, forcing the Company to operate the CPP at lower loads. The Company is developing alternate fuels for the CPP to ensure operations at optimum load. Also, plans are afoot to purchase power through energy exchanges to meet the short-fall.

Creation of bulk storage facility for Propylene Oxide at Ennore Port is in progress and is expected to be operational during the 2nd quarter of FY 2013-14.

FINANCIAL REVIEW

The year 2012-13 witnessed moderate changes in interest rates. The repo rate increases during the year 2011-12 resulted in steep increase in lending rates of banks and other operators. However, during the year, these were retained at the previous year’s level in the first half and slightly brought down during the second half, to induce economic growth. On the forex front, there was a sharp decline in rupee value by about 6.7%. These resulted in marginal increase in the cost of funds. Also the investible surplus was significantly lower due to decline in operations witnessed during the year and higher capital spending for creation of storage facilities.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company operates in the Polyurethanes (PUs) Market, comprising two sectors: Methylene diisocyanate (MDI) and Toluene Diisocyanate (TDI). The PUs market in India has displayed a robust growth rate over the past 5 years and is highly potential. MDI-based PUs are growing at a faster rate, as these are easier to handle and have a wider application base compared to TDI- based PUs.

Indian Polyurethane industry’s performance during 2007-2012 had been impressive with double-digit growth, but the market has become stagnant in 2013 due to various factors like overall economic slow-down, impact of global economic crisis on Indian manufacturers, inflationary pressures, monsoon failure, etc.

The company also manufactures Propylene Glycol (PG) for pharma, fragrance and industrial applications and continues to perform well in the Pharma and fragrance sectors. The off-take of PG for industrial applications is lower due to availability of alternate cheaper materials.

MARKET SCENARIO

During the year, the Company achieved a turnover of Rs. 5798.700 Millions against Rs.6295.200 Millions in FY 2011-12, lower by about 8% on account of the reasons stated above. It may be recalled that during the previous year (FY 2011-12), the company achieved all time high sales and profits, notwithstanding the overall economic growth being lower as the Indian Polyurethane market performed better. The growth in automotive and appliances segments during the last few years intensified demand for PUs in India. However, during the year, the slow-down stretched to all the segments and hence the Company too suffered on account of sluggish market coupled with dumping of overseas materials by MNCs enjoying zero duty on polyols imported into India. With the global economy witnessing further deterioration, the situation worsened in the 2nd half of the year and in order to retain its market share, the Company had to sell products at very low prices, eroding the margins substantially.

OUTLOOK

The World Trade Organization has scaled down the global trade growth forecast for the year 2013 at 3.30% from the earlier 4.5%; it may be pertinent to note that the global trade growth had fallen to 2% in 2012 from 5.11% in 2011. This trend is expected to persist in the short-term and revival could happen in the medium term.

In order to overcome the setback, the company has taken steps to develop new applications for its products in brake fluid, drilling applications, water proofing, etc., while also taking care of its commitment to environment. The Company is also exploring the possibilities to develop product applications in medical devices.

The Company has also created additional storage facilities for the finished goods at its plants, in addition to the arrangements for bulk storage facilities for imported raw materials in Ennore Port which are expected to provide flexibility in plant operations depending on market conditions.

The company is confident of overcoming the difficulties through modified product mix and foraying into newer markets.

FUTURE OUTLOOK AND NEW PRODUCTS

CONTINGENT LIABILITIES

Particular	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
a) Bills discounted	14.496	41.344	30.839
b) Letters of Credit / Guarantees	267.311	307.575	201.629
c) Disputed Excise and Customs demands	6.807	6.807	7.405
d) Disputed Sales Tax demands	5.771	5.771	5.771
e) Disputed Income Tax demands	11.867	11.867	48.802

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80047338	30/12/1996	663,868,000.00	DEPARTMENT OF COMMERCIAL TAXES	GOVT. OF TAMILNADU, CHENNAI, TAMILNADU - 600006, INDIA	-
2	90297555	15/11/2006 *	225,600,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, NO.86 RAJAJI SALAI, CHENNAI, TAMILNADU - 600001, INDIA	-
3	80053563	07/04/1995 *	88,300,000.00	CANARA BANK	TEYNAMPET BRANCH, TEYNAMPET, CHENNAI, TAMILNADU - 600018, INDIA	-

* Date of charge modification

FIXED ASSETS:

Tangible Assets

• Land

• Development on lease-hold land
• Plant and Machinery
• Building
• Furniture and Fixture
• Office Equipments
• Computers
• Vehicles

Intangible Assets

• Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.95
UK Pound	1	Rs.99.36
Euro	1	Rs.82.15

INFORMATION DETAILS

Report Prepared by :

NIT

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.